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<br />2* <br />RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br /> <br />BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 14, 2022 <br />SUBJECT: EXPENDITURE FOR PUBLIC UTILITIES PORTION OF THE GASB 87 AND <br />LEASE MANAGEMENT SOFTWARE SOLUTION FROM RFP 2086 TO LANCE, <br />SOLL & LUNGHARD, LLP FOR SERVICES THROUGH DECEMBER 31, 2026, <br />IN THE AMOUNT OF $88,369 <br />ISSUE: <br />Consider approving an expenditure for the Riverside Public Utilities portion of the cost associated <br />with RFP 2086 for software to support the implementation of GASB 87 and lease management, <br />with Lance, Soll & Lunghard, LLP, for a three-year term with the option to extend for two <br />additional one-year terms through December 31, 2026, for an amount not to exceed $88,369. <br />RECOMMENDATION: <br />That the Board of Public Utilities approve an expenditure for a total amount not to exceed <br />$88,369 for the Riverside Public Utilities portion of cost associated with RFP 2086 for software <br />to support the implementation of GASB 87 and lease management, with Lance, Soll & Lunghard, <br />LLP, for a three-year term with the option to extend for two additional one-year terms through <br />December 31, 2026. <br /> <br /> <br />BACKGROUND: <br />The Governmental Accounting Standards Board issued GASB Statement No. 87, Leases, <br />essentially eliminating the concept of off-balance sheet financing and requiring organizations to <br />recognize equipment and real estate type leases as assets and liabilities on the balance sheet. <br />Under GASB 87, a lessee government is required to recognize: (1) a lease liability; and (2) an <br />required to recognize: (1) a lease receivable; and (2) a deferred inflow of resources. A lessor will <br />continue to report the leased asset in its financial statements. <br /> <br />year 2021/22). The City is party to lease agreements as both a lessee and lessor for various <br />types of property, including real estate and equipment. The City has estimated approximately <br />450 leases citywide spanning across multiple departments; however, it is likely a significant <br />portion of these leases are not GASB 87 relevant, but instead will be recorded and monitored in <br />the new software solution for lease management purposes. Current lease information is stored <br /> <br />